Stock number one is:
Applied Materials Inc., (SYMBOL: AMAT) and the headline says: Use Flat October Quarter Guidance to Buy Ahead – Citi Research
Semi-conductor equipment maker Applied Materials announced third quarter earnings a fraction below Street estimates, and named President Gary Dickerson as the new CEO.
"Applied Materials’ earnings are expected to fall this year, then increase rapidly. S&P and CitiGroup reiterated a rosy future for the company in research reports today. The dividend yield is 2.5% and the 2014 PE is 14, in a normal range of 14-32.
The shares appear to be completing a long-term trading pattern, and preparing to climb toward resistance at $20. This undervalued but volatile stock could appeal to traders and most stock investors."
Our Ransom Note trendline says: BUY APPLIED MATERIALS.
Stock number two is:
Sanofi, (SYMBOL: SNY) and the headline says: Earnings Down, Outlook Lowered at Sanofi -- Zacks
French healthcare company Sanofi posted second quarter earnings way below consensus. Zacks reports that problems include “generic competition, European pricing pressure and … inventory mismanagement in Brazil.” Patented drugs continue to show strength. Zacks and S&P are bullish on Sanofi’s new drug pipeline to treat M.S., diabetes, and colorectal cancer.
Earnings are projected to fall 13% or more this year, then rebound next year. The annual June dividend yield is in the 2-3% range, and the PE is 15.
Sanofi’s stock broke past long-term resistance at $50 in March, and is trading between $50 and $56. Value investors should jump in below $52.
Our Ransom Note trendline says..... HOLD SANOFI.